Starting May 1, 2025. Forever 21 will be shutting down. The operator, F21 OpCo, filed for bankruptcy on Sunday, March 16. 2025. “The company anticipates vacating our approximately 354 leased stores by the end of April,” said the operator of Forever 21.
Founded in 1984 by Korean immigrants in California, Forever 21 quickly became a mall staple for millennials seeking designer-inspired styles, alongside fellow low-cost retailer H&M and the pricier Abercrombie & Fitch. Its sales peaked at more than $4 billion in 2015, with founders Jin Soo and Do Won Chang estimated to hold a combined net worth of $59 billion. This is the second time Forever 21 has filed for bankruptcy, with the first occurring in 2019, hoping to become a more efficient operation, but Covid-19 only accelerated the company’s woes. “It was probably the biggest mistake I made,” said the CEO of Forever 21.
Authentic Brands, Forever 21’s brand and intellectual property owner, and mall owners, Simon Property Group and Brookfield Corporation, saved the fast fashion retailer from bankruptcy. Forever 21 filed for bankruptcy in the court for the District of Delaware on Sunday due to the competition from foreign companies with fast fashion like Shein and Temu, especially as online shopping boomed during the pandemic. Another thing taking a toll on Forever 21 is the highly competitive retail environment due to the de minimis exemption, which exempts goods valued under $800 from import duties and tariffs. “Forever 21 is one of the most recognizable names in fast fashion. It is a global brand rooted in the U.S. with a strong future ahead,” said Jarrod Weber.
The local mall most students go to is the Alderwood Mall. The Forever 21 located at that mall is expected to close on May 1, 2025. “I used to go to Forever 21 to visit my best friend who worked there, occasionally I would buy some clothes there and it was super 2018 vibes, but it still sucks that they are shutting down,” said Mashal Abbasi.
Forever 21 has now joined a long list of companies that have closed down in the U.S. The company said in a statement that the stores and website in the U.S. will stay open and continue to serve their customers for now, but it’s implementing an “orderly wind-down” of its business in the country. They added that they would conduct liquidation sales at their stores and that they were seeking a buyer for some or all of its assets.